Dubai's New Freehold Move Expected to Attract More Investors

Dubai’s new plan to let property owners on Sheikh Zayed Road and in Al Jaddaf change their land to freehold is an important step for the city’s real estate market. Firas Al Msaddi, CEO of fäm Properties, said this change is good for everyone – investors, developers, and the real estate market in Dubai.

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He also explained that areas like Al Jaddaf and Sheikh Zayed Road are now among the best places for real estate. Giving people from all countries the right to own land here will make the market better and make investors trust it more.

The Dubai Land Department (DLD) shared that 457 plots will be able to be changed to freehold. This includes 128 plots on Sheikh Zayed Road, from the Trade Centre roundabout to the Dubai Canal, and 329 plots in Al Jaddaf.

Al Msaddi said this shows Dubai is working hard to create new chances for investors and developers. He also pointed out that Dubai is becoming a leader in real estate and that it welcomes investment from all over the world.

Al Msaddi believes the decision to make Al Jaddaf a freehold area will have a big impact. “This change will bring more business to Al Jaddaf and the prices of properties there will go up,” he said. “Al Jaddaf is a special area that doesn’t have many plots available. It has both homes and commercial land, which is rare in the best parts of Dubai.”

Al Msaddi also mentioned that medium-sized commercial plots in Al Jaddaf are good for companies that want to build their own offices. This is important because most commercial plots in Dubai are meant for tall buildings, but Al Jaddaf’s plots offer more choice.

However, he warned that the cost of changing plots to freehold might lead to higher prices. Some sellers may try to sell their land for more money, which could slow down sales if prices become too high for development.

“If prices go too high, it could slow things down,” he said. “But over time, the market will adjust itself and the price will find the right balance based on what buyers are willing to pay.”

Al Msaddi also mentioned that prices in Dubai are already high because many developers are planning new projects. At the moment, plots are mostly bought for projects that are planned to sell before they are built, rather than for renting. This makes buying land for rent less attractive at today’s prices.

For Sheikh Zayed Road, Al Msaddi thinks the freehold change will make the area more appealing. There have already been several new towers built here, and this change will increase interest and make the market more lively.

“Before, plots on Sheikh Zayed Road were only developed to rent, which made them less attractive to investors,” he said. “But now, with freehold ownership, the land can be bought by anyone around the world, making it a much more competitive and desirable place for investment.”

Al Msaddi finished by saying that the new rule will bring many opportunities for both developers and individual investors, helping make the area more dynamic and ready for global investments.